BollBounce - SUPERB 4H Swing Strategy

[c0nundrum]

A nice system I have been trading for 3 months.. gained me 50% on account so far :-)
It is based mainly on price movement, and the fact that prices like to retrace to trending moving average and bounce from it, creating strong movements.

Last 2 Weeks Results
GBPUSD: +212 pips
EURUSD: +712 pips

Charts
This system works on any charts; I prefer using it on 4H and 1H charts.
Be sure to backtest it before you try it on any other time frame.

Indicators
Only Bollinger(20)

Entry Rules
Entry is made after price bounces from Bollinger's Moving Average, when the Moving Average is trending (pointing up or down).
After price has bounced from MA (Created a bullish candle for long trades or bearish for short), place stop order 1 pip above the candle (for long) or below the candle (for short). Watch examples for clarifications.

Stop Loss is 1 pip below low of the previous bar (for long trades), and 1 pip above high of previous bar + spread (for short trades).

Trailing Stop
This is what this system is all about.
Stop Loss is trailed to 1 pip below lowest low of last 4 bars (for long trades) and to 1 pip above highest high of last 4 bars (for short trades). Exits are done only by the trailing stop.

Money Management
I risk 2% of starting equity on each trade.

That's about it. More example for trades can be found at my blog, I also post weekly results there. Good trading everyone and lots of pips!

[Kinetical]

This strategy is just trading off of a 20 SMA.

The BBand MA is just a plain SMA at the period indicated by the BBand parameters.

A strategy like this is great for trending markets but you may want to consider a secondary form of market analysis to avoid choppy markets.

Being able to recognize + stay out of the market during times of sideways movement or predictable volatility is KEY for an SMA based trading system.

Have you tried combining an awareness of short term market cycles to validify bounces off your 20 SMA?

[Kinetical]

7 Entries in a trending market

I like using a wave for my Moving Average bounces. Included in this chart is a 21 SMA wave. One 21 SMA applied to the high, one to the close and one to the low. I typically look for extreme wicking or an indecision candle.

[khater]

hi my frined i am sorry my english not excelent and i need ask you about the setting .


is only put the indicator with out any change .and i see many time cut the line and come back with out any assit





thank you

[kumagaya5019]

hi c0nundrum,what's ur blog's url?

[Deadwinga]

So how profitable has been the system so far? Any recent updates?

[manit]

i use this system and it works verywell indeed in fact its the only system i use now going through so many and only use it on gpb/usd i should think it will work on any and any time frame great system simple thats the ans......

[altar]

Have you tried combining an awareness of short term market cycles to validify bounces off your 20 SMA?

Hi Kinetical,
Could you explain a little more about "that awareness of short term market cycles"?
I also use a trendline bounce system and I would really need a way to validate bounces. I've been looking at charts to find clues, but haven't found anything yet.

Thanks in advance

[wannoob]

I must say. This is quite an effective simple system.

If you combine with maurizio EMA system and plot in on a 3H (im using oanda) chart, you'll get a clear indication of where the market is heading. Unless there is a intervene from central bank + news.

To make a better decision, try to draw a trendline for both low and high.

I found it to be very effective.

Love it.